After entering the Orlando market in September, Texas-based S2 Capital expanded its multifamily portfolio this month with another 760 class B apartment units in the Millenia submarket.
The two latest acquisitions bring the company close to the halfway point of its stated goal to own 5,000 units in Orlando by 2020.
The firm paid $46.85 million the week before Thanksgiving for Andover Place I & II, which have a combined 400 units. Both are located on S. Rio Grand Avenue, just south of Americana Boulevard. The seller was an affiliate of PGIM Real Estate.
Last week, an S2 affiliate paid $30.7 million in an off-market deal for Waterview Apartment Homes at 4937 Waterway Court. The 360-unit complex, which is accessed via U.S. 441/S. John Young Parkway, was built in 1986 utilizing Low Income Housing Tax Credits. The tax credits and associated rent restrictions have since expired.
The seller was an Atlanta-based nonprofit, American Opportunity Fund, which realized a quick profit after having bought the complex two years earlier for $22.7 million.
Both of the properties are adjacent to Grandview Pointe, another S2 community, on the north and south.
S2 targets its investments on underperforming or distressed multifamily properties of 175 units or more in Arizona, Texas and Florida, according to its website. The company typically spend $10,000 to $15,000 per unit on improvements to the common areas, apartment interiors and amenities.
S2 owns more than 20,000 units with the acquisition of the Orlando properties, the website said, and has made invested over $200 million in renovations at its properties through affiliate S2 Construction.